Hovione Buys Drug Manufacturing Facility in China

Mar 06, 2008, 00:00 ET from Hovione

    LOURES, Portugal, March 6 /PRNewswire/ -- Hovione announces that it has
 purchased 75% of Hisyn Pharmaceutical Co. Limited. The Zhejiang provincial
 authorities have already issued the necessary business license and the
 joint venture (JV) is now operational.
     The acquisition provides Hovione with significant additional drug
 substance manufacturing production capacity and strengthens its 20 year
 presence in China. The acquisition includes both development labs in
 Shanghai and an active pharmaceutical ingredient (API) plant occupying
 22,000 square meters. on a 22 acre plot employing 181 staff. Hovione's
 relationship with Hisyn started with the supply of intermediates, but this
 factory, which was commissioned in 2005 from a greenfield site, will now
 produce Hovione's two largest volume products.
     "Hisyn represents an opportunity to both increase our manufacturing
 capacity and ensure a sustainable cost advantage. We find it important to
 provide our current customers with an assurance of competitive supply over
 the long run; and in addition we want to have a strong presence in new
 markets, such as Brazil, India and China, where price is decisive" said
 Miguel Calado, CFO.
     The negotiation and the acquisition processes moved smoothly in part
 due to the experience Hovione has built in China over the last 3 decades.
 The Macau plant, with 5 previous FDA inspections and more than 10 years of
 contract manufacturing relationships in China, has enabled Hovione to
 effectively bridge cultures with China in every dimension: language, GMP,
 culture and business practices.
     Luis Gomes, Vice President of Generics, and responsible for the
 investment and integration process added: "When we first came to the Canton
 fair in 1979 we were buying raw-materials that would be processed in Macau
 or in Portugal. For many years we felt we'd be better off being an
 important client of Chinese plants through contract manufacturing deals,
 because at that time there many JVs going very wrong. Now is the right time
 for Hovione to acquire infrastructure in China and tap into a growing
 market and leverage China's manufacturing abilities. We are planning to
 invest further monies in 2008 to effectively double Hisyn's manufacturing
     Hovione is an international group specializing in the development and
 compliant production of active pharmaceutical ingredients, serving
 exclusively the pharmaceutical industry. In 2006 it had sales of US$94
 million (Euro 70 million). With almost 50-year in process development,
 quality standards and advanced particle design technologies, Hovione offers
 APIs for all drug delivery systems, from oral to injectable and from
 inhalation to topical applications. With FDA inspected plants in Europe,
 the Far East and New Jersey, Hovione is committed to the highest levels of
 service and quality. Specializing in complex chemistry, Hovione offers
 services related to the development and manufacture of either a new
 chemical entity (NCE) for an exclusive contract manufacturing partner or an
 existing API for an off-patent product.
     For further information about Hovione, please visit the Hovione site at
 http://www.hovione.com or contact Corporate Communications:
Isabel Pina, +351-21-982-9362, e-mail: hello@hovione.com.

SOURCE Hovione